Polish Governance: PGK with more facilitations
A larger group of companies will be able to form a Tax Capital Group (PGK). Restructurings within the Group will also be possible, the Finance Ministry announced.
– Let us remind that today the PGKs may be formed by capital companies, whose average share capital amounts to half a million zlotys. From next year, under the Polish Order programme, it would amount to PLN 250 thousand. As a result, an increase in the number of such Groups should be expected. According to the MF, it is worth promoting PGK, as it is an attractive form of settlements, remarks Michał Thedy, tax adviser, partner in Thedy & Partners.
It is not the end of novelties. The Finance Ministry also wants to introduce the possibility of mergers, transformations and divisions of companies, which are part of PGK. Additionally, the condition of profitability is to disappear.
– Nowadays, if PGK is not able to show profitability at the level of 2% it loses its status of a taxpayer – adds Michał Thedy.